Can Real Estate Be Willed to One Person and the Debt on It to Another

[CJPrinter]

Could you be more explicit? Was Heir One a co-owner? With right of survivorship? Or as a tenant in common?

I'm not certain how it was done, (Neither of these individuals are me, I'd be heir three. lol) but I know heir ones name was on the deed. I'm guessing with right of survivorship since the assessor's site only lists a single owner, the deceased. But that's just a guess.

[harrylime]

I'm not certain how it was done, (Neither of these individuals are me, I'd be heir three. lol) but I know heir ones name was on the deed. I'm guessing with right of survivorship since the assessor's site only lists a single owner, the deceased. But that's just a guess.

The reason that I asked is that, if Heir One was a tenant in common co-owner, then the will becomes relevant since probate would be needed to transfer the deceased's ownership interest to Heir One. And, if there is probate, then any assets are fair game for legitimate creditors.

If Heir One was a co-owner with right of survivorship, then the transfer of the deceased's interest is a non-probate or non-testamentary transfer. Some non-probate transfers could be subject to recovery by legitimate creditors.

Take this for what it is worth because I only skimmed Missouri's non-testamentary provisions and the article referenced below while waiting for your reply. But I believe that real property transferring by right of survivorship would be exempt from recovery by creditors. Here is the chapter of MO statutes dealing with non-probate transfers:

http://www.moga.mo.gov/statutes/C461.HTM


And here is an article from the Journal of the Missouri Bar on that topic:

http://www.mobar.org/uploadedFiles/H...-10/estate.pdf


(Another possibility that I did not think about is a transfer by way of a beneficiary deed.)

[CJPrinter]

The reason that I asked is that, if Heir One was a tenant in common co-owner, then the will becomes relevant since probate would be needed to transfer the deceased's ownership interest to Heir One. And, if there is probate, then any assets are fair game for legitimate creditors.

If Heir One was a co-owner with right of survivorship, then the transfer of the deceased's interest is a non-probate or non-testamentary transfer. Some non-probate transfers could be subject to recovery by legitimate creditors.

Take this for what it is worth because I only skimmed Missouri's non-testamentary provisions and the article referenced below while waiting for your reply. But I believe that real property transferring by right of survivorship would be exempt from recovery by creditors. Here is the chapter of MO statutes dealing with non-probate transfers:

http://www.moga.mo.gov/statutes/C461.HTM


And here is an article from the Journal of the Missouri Bar on that topic:

http://www.mobar.org/uploadedFiles/H...-10/estate.pdf


(Another possibility that I did not think about is a transfer by way of a beneficiary deed.)

So regardless, heir two isn't responsible for the debt simply because that's what the will says. The executor (heir one) is responsible for paying the debt from any estate and the court should direct that. Am I understanding correctly?

[flyingron]

The estate debts have to be paid, that may include selling the property in the estate regardless of what the will says. The will only applies when there is something left to distribute.

[jk]

The rest would be very hard pressed to cover that loan. Would this mean the creditor for the loan is out of luck and doesn't have to be paid?

if the work was done with heir 1 as a listed owner, probably not. Contractor can possibly assert a lien against the property, depending on all of the facts.

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I'm not certain how it was done, (Neither of these individuals are me, I'd be heir three. lol) but I know heir ones name was on the deed. I'm guessing with right of survivorship since the assessor's site only lists a single owner, the deceased. But that's just a guess.

that is irrelevant. What is important is what deeds have been recorded assigning any interest to any party.

[CJPrinter]

if the work was done with heir 1 as a listed owner, probably not. Contractor can possibly assert a lien against the property, depending on all of the facts.

The loan was for a furnace and hot water heater and I'm pretty sure it was actually just a signature loan through the deceased's bank.

What is important is what deeds have been recorded assigning any interest to any party.

Okay. I'm not sure about the actual facts pertaining to the deed.

[jk]

unless you know what the deed situation is, nothing else really matters. There is just no way to provide an answer without knowing how title was held to the property prior to the death.

[CJPrinter]

unless you know what the deed situation is, nothing else really matters. There is just no way to provide an answer without knowing how title was held to the property prior to the death.

I understand and really appreciate the help. My main point for asking in the fires place was do verify heir two isnt responsible for a debt simply because the will says so. I think that answer is clear enough. Unfortunately future family relations are the main counterpoint there. Thanks again! :^)

[harrylime]

Out of curiosity, who wrote this will? I hope that it wasn't an attorney.

[CJPrinter]

Out of curiosity, who wrote this will? I hope that it wasn't an attorney.

It was the Legal Services of Missouri. They offer free legal services to low income citizens in Missouri.